Power Grid Corp to seek shareholders' nod to raise up to Rs 6,000 cr via bonds

The state-owned utility will seek shareholders' approval on 29 August 2022, to raise upto Rs 6,000 crore through the issuance of bonds during the financial year 2023-24.

Power Grid Corporation of India is planning to raise funds from domestic sources through private placement of secured/unsecured, non-convertible, cumulative/non-cumulative, redeemable, taxable/tax-free bonds in one or more tranches but not exceeding twenty tranches/offers. The fund raising proposal is listed on the agenda of the annual general meeting (AGM) to be held on 29 August 2022.

The funds will be utilised for financing of capital expenditure, providing inter corporate loan(s) to wholly owned subsidiaries, other purposes as may be approved by board of directors/committee of directors for bonds and for general corporate purposes.

Power Grid Corporation of India has been established by the Government of India (GoI) as the central transmission utility of India. As of 31 March 2022, the Government of India owned a 51.34% stake in the company.

On a consolidated basis, the company's net profit rose 17.9% to Rs 4,156.44 crore on a 1.7% rise in net sales to Rs 10,686 crore in Q4 FY22 over Q4 FY21. The company's board will consider Q1 results on 8 August 2022.

Shares of Power Grid Corporation of India rose 1.20% to Rs 223.50 on Friday, 5 August 2022.

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